Fortune Minerals investor China Mining buys more shares

2009-07-15 16:11 ET - News Release

An anonymous director reports

CHINA MINING RESOURCES GROUP LIMITED - NEWS RELEASE

China Mining Resources Group Ltd. confirms that on July 15, 2009, it indirectly acquired through its wholly owned subsidiary, Best Tone Holdings Ltd., 7,341,300 common shares of Fortune Minerals Ltd., constituting 11.31 per cent of the issued and outstanding shares of the company. China Mining now has beneficial ownership and control over 9,285,800 shares of the company, representing approximately 14.31 per cent of the issued and outstanding shares of the company.

The shares were acquired on the Toronto Stock Exchange for 50 cents per share. The shares were acquired for investment purposes only. China Mining may increase or decrease its beneficial ownership of the company's securities depending on future economic or market conditions.

In relation to the acquisition of the shares, Best Tone entered into an agreement with Sprott Asset Management LP, on behalf of Sprott Canadian Equity Fund, Sprott Energy Fund, Sprott Bull/Bear RSP Fund, Sprott Hedge Fund LP, Sprott Hedge Fund LP II, Sprott Master Fund Ltd., Sprott Master Fund II Ltd. and certain Sprott managed accounts (collectively, the vendor), whereby Best Tone agrees that if it makes an offer to purchase all of the common shares of the company by way of a cash takeover bid in the period from the date of the agreement until April 9, 2010, at a price higher than 50 cents per share, and Best Tone acquires more than 66-2/3 per cent of the outstanding common shares of the company pursuant to such offer, then Best Tone will pay the vendor an amount equal to the difference between the offer price and 50 cents. The agreement also contains customary representations and covenants in relation to the sale and purchase of the shares.

A copy of the early warning report has been filed with applicable securities commissions and can be found on SEDAR.